It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in MYCELX Technologies Corporation’s (LON:MYX) case, it’s fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for MYCELX Technologies
The Last 12 Months Of Insider Transactions At MYCELX Technologies
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Thomas Lamb bought UK£134k worth of shares at a price of UK£0.50 per share. That means that even when the share price was higher than UK£0.34 (the recent price), an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take a careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they are paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months MYCELX Technologies insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
MYCELX Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that MYCELX Technologies insiders own 21% of the company, worth about UK£1.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At MYCELX Technologies Tell Us?
It doesn’t really mean much that no insider has traded MYCELX Technologies shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in MYCELX Technologies and their transactions don’t cause us concern. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing MYCELX Technologies. To that end, you should learn about the 5 warning signs we’ve spotted with MYCELX Technologies (including 4 which are a bit unpleasant).
But note: MYCELX Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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